T-Mobile US Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did TMUS Beat Earnings? Q1 2025 Results
T-Mobile US opened 2025 with a record-setting quarter, posting first-quarter earnings of $2.58 per share, a 4.51% beat against the $2.47 consensus estimate, while revenue of $20.89 billion grew 6.6% year-over-year and edged past the $20.62 billion Street forecast by 1.29%. The standout driver behind the results was an unprecedented wave of customer additions, with the carrier adding 1.3 million postpaid net customers in Q1, its best-ever first-quarter haul, pushing total connections to a record 130.9 million. That subscriber momentum flowed directly into the financials, lifting net income 24% to $2.95 billion and propelling Adjusted Free Cash Flow to a Q1 record of $4.40 billion, up 31%. With competitors struggling to hold broadband share, T-Mobile extended its own streak to 13 consecutive quarters of industry-leading High Speed Internet additions. Management translated the momentum into raised 2025 guidance, now targeting Core Adjusted EBITDA of $33.20 to $33.70 billion and Adjusted Free Cash Flow of $17.50 to $18.00 billion.
- Best-ever Q1 postpaid gross and net customer additions
- Higher postpaid ARPA driven by premium rate plan adoption and growing customers per account
- High Speed Internet net additions led industry for 13th consecutive quarter
- Prior year rate plan optimizations providing positive revenue impact
- Equipment revenue increase from higher average revenue per device and high-end phone mix
- Lower cost of services from completion of Sprint network decommissioning
“T-Mobile delivered big yet again with outstanding Q1 results across wireless and broadband, including our best ever Q1 total postpaid customer gross and net additions—proof that our consistent customer-first focus has put us in the best position to succeed in this dynamic environment.”
T-Mobile US CEO, on the earnings call
Forward Guidance & Outlook
T-Mobile raised its 2025 financial guidance: Core Adjusted EBITDA is now expected at $33.2–$33.7 billion (up from $33.1–$33.6 billion), net cash provided by operating activities at $27.0–$27.5 billion (up at midpoint from $26.8–$27.5 billion), and Adjusted Free Cash Flow at $17.5–$18.0 billion (up at midpoint from $17.3–$18.0 billion). Capital expenditures remain at approximately $9.5 billion. Postpaid net customer additions guidance is maintained at 5.5–6.0 million, the highest-ever at this point in the year. Effective tax rate is expected at 24%–26%. Guidance excludes pending acquisitions of UScellular and Metronet.
TMUS YoY Financials
TMUS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.